Building Your infoLake?, part 1

Privacy-Driven Change

As of 2023, a handshake agreement has continued to dominate digital marketing: Big Tech owns the information required for targeted advertising, and digital marketers lease it from them. It’s been this way for 20 years.

But in 2024, this dynamic is experiencing a seismic shift: Google Chrome is set to eliminate support for third-party cookies by the end of the year.

Simply put, privacy is paramount for both people and governments, and the internet is adapting accordingly. A side effect of these sweeping changes is Big Tech further consolidating their grip on consumer information.

Marketers must adapt as well. Virtually every sector is still heavily reliant on third-party cookies, and significant change is on the horizon.

The Steady Evolution Toward Privacy

In 2017, Apple launched tracking prevention in Safari. Advertising groups protested the move, arguing it would undermine the economic model of the internet.?

Apple stood by its decision, and digital marketers were forced to adapt. With Safari representing only 15% of browser market share, disruptions were significant but also highly targeted, most notably for higher-end consumers with iPhones.

From Gradual Adjustments to Sudden Disruption

In January 2024, Google Chrome eliminated third-party cookies for 1% of users. Their public commitment is to eliminate 100% of third-party cookies by Q3 of 2024.

With Chrome's market domination, this move has far-reaching implications for the digital advertising industry. It will force a broader and deeper pivot than has ever been required before.

As we move into 2024, the challenge for marketers lies in navigating this new landscape and finding innovative ways to connect with audiences in a world where traditional cookies are no longer the currency of the internet.

Alternatives to Panic

Marketers are exploring alternatives. One prominent option is first-party data, which offers precise targeting. Zero-party data, which is actively shared by consumers, also has high accuracy and relevance.

Contextual advertising – aligning ads with content – is gaining traction. Meanwhile, identity resolution strategies unify customer profiles across platforms.

Google's Topics API takes a different approach, grouping users based on interests. While this method promises privacy, Tara DeZao from Pega critiques Google Topics as a less targeted method and predicts a return to broader, less relevant advertising.

DeZao emphasizes that brands should deploy a variety of the tactics shown above. Diversity in approach is particularly pertinent for CPG brands, who often lack access to first-party data and rely on partnerships with retail media to reach consumers.

Next Time...

First- and Zero-Party Information in an infoLake?